If a student completely terminates enrollment, stops attending classes, or receives all failing grades or a combination of failing grades and withdrawals before completing more than 60% of the enrollment period, a calculation is performed to determine if a repayment is required. The amount of Title IV aid the student must return is determined by the Federal Formula for Return of Title IV Funds as specified in Section 484B of the Higher Education Act. This law also specifies the order of return of the Title IV funds to the programs from which they were awarded.
Refund/payment to the various programs will be in the following priority within 30 days:
1. Federal Direct Loan Program
(Unsubsidized Federal Stafford Loan)
(Subsidized Federal Stafford Loan)
2. Federal Pell Grant
3. Other Title IV programs
A repayment may be required when cash has been disbursed to a student from financial aid funds in excess of the amount of aid the student earned during the term. The amount of Title IV aid earned is determined by multiplying the total Title IV aid (other than Federal College Work Study) for which the student qualified by the percentage of time during the term that the student was enrolled. The date used in the calculation is either the date of the complete withdrawal or the date issued by the instructor if a failing grade is earned for nonattendance. If a date cannot be determined, midpoint of the semester is used (50%).
If less aid was disbursed than was earned, the student may receive a late disbursement for the difference. If more aid was disbursed than was earned, the amount of Title IV aid that must be returned (i.e. that was unearned) is determined by subtracting the earned amount from the amount actually disbursed.
The responsibility for returning unearned aid is allocated between the college and the student according to the portion of disbursed aid that could have been used to cover college charges and the portion that could have been disbursed directly to the student once college charges were covered. North Arkansas College will distribute the unearned aid back to the Title IV program as specified by law. The student will be billed for the amount the student owed to the Title IV programs and any amount due to the college resulting from the return of Title IV funds used to cover college charges.
Copies of the refund calculation are available upon request in the Financial Aid Office.
Official Withdrawal
Students who wish to withdraw from a class or classes must do so in the Office of the Registrar by completing an official “Change of Class Schedule” form. Notification from the Registrar’s Office to the Financial Aid Office is made regarding the student’s date of withdrawal. Federal formula requires a return of Title IV aid if the student received federal assistance and withdrew on or before completing 60% of the semester. The percentage of Title IV aid to be returned is equal to the number of days remaining in the semester divided by the number of calendar days in the semester. Scheduled breaks of five or more consecutive days are excluded.